Innerva Soy Products (MSP) buys soybeans and processes them into other soy products. Each ton of soybeans that MSP purchases for $350 can be converted for an additional $200 into 625 lbs of soy meal and 180 gallons of soy oil. A pound of soy meal can be sold at splitoff for $1.12 and soy oil can be sold in bulk for $4.5 per gallon. MSP can process the 625 pounds of soy meal into 725 pounds of soy cookies at an additional cost of $350. Each pound of soy cookies can be sold for $2.12 per pound. The 180 gallons of soy oil can be packaged at a cost of $220 and made into 720 quarts of Soyola Each quart of Soyola can be sold for $1.15 Read the requirements Requirement 1. Allocate the joint cost to the cookies and the Soyola using the (a) Sales value at splitoff method and (b) NRV method a. First, allocate the joint cost using the Sales value at splitoff method. (Round the weights to three decimal places and joint costs to the nearest dolar.) Sales value of total production at splitoff Weighting Joint costs allocated Cookies/ Soy Meal Soyolal Soy Oil Total Requirements 1. Allocate the joint cost to the cookies and the Soyola using the following: a. Sales value at splitoff method b. NRV method 2. Should MSP have processed each of the products further? What effect does the allocation method have on this decision? Print Done